Rackspace Technology (NASDAQ:RXT) Trading 11.1% Higher – What’s Next?

Shares of Rackspace Technology, Inc. (NASDAQ:RXT) rose 11.1% during mid-day trading on Thursday . The stock traded as high as $5.17 and last traded at $5.1450. Approximately 3,812,344 shares changed hands during trading, a decline of 84% from the average daily volume of 24,219,025 shares. The stock had previously closed at $4.63.

Analyst Ratings Changes

Separately, Royal Bank Of Canada lifted their price target on shares of Rackspace Technology from $1.75 to $2.50 and gave the stock a “sector perform” rating in a report on Friday, February 27th. Three investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has a consensus rating of “Reduce” and a consensus target price of $1.95.

Rackspace Technology Price Performance

The stock has a 50-day moving average price of $2.59 and a 200-day moving average price of $1.64. The company has a market capitalization of $1.29 billion, a P/E ratio of -8.48 and a beta of 2.23.

Rackspace Technology (NASDAQ:RXT) last announced its earnings results on Thursday, May 7th. The company reported ($0.06) EPS for the quarter, missing the consensus estimate of ($0.03) by ($0.03). The company had revenue of $678.10 million during the quarter, compared to analyst estimates of $660.83 million. Rackspace Technology has set its FY 2026 guidance at -0.200–0.150 EPS. Sell-side analysts anticipate that Rackspace Technology, Inc. will post -0.18 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, EVP Dharmendra Kumar Sinha sold 188,123 shares of the company’s stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $1.81, for a total value of $340,502.63. Following the sale, the executive vice president directly owned 2,276,057 shares of the company’s stock, valued at approximately $4,119,663.17. This represents a 7.63% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, CFO Mark A. Marino sold 14,058 shares of Rackspace Technology stock in a transaction on Wednesday, March 18th. The stock was sold at an average price of $1.81, for a total transaction of $25,444.98. Following the transaction, the chief financial officer directly owned 2,158,874 shares of the company’s stock, valued at $3,907,561.94. This represents a 0.65% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 267,757 shares of company stock worth $484,640. Insiders own 2.90% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. boosted its position in shares of Rackspace Technology by 6.1% during the 3rd quarter. Vanguard Group Inc. now owns 6,288,882 shares of the company’s stock valued at $8,867,000 after purchasing an additional 359,087 shares in the last quarter. Janus Henderson Group PLC increased its holdings in Rackspace Technology by 179.7% in the first quarter. Janus Henderson Group PLC now owns 2,937,670 shares of the company’s stock worth $2,878,000 after purchasing an additional 1,887,317 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Rackspace Technology by 4.2% during the 4th quarter. Geode Capital Management LLC now owns 2,408,000 shares of the company’s stock worth $2,338,000 after buying an additional 96,760 shares in the last quarter. Renaissance Technologies LLC increased its stake in shares of Rackspace Technology by 14.0% in the 1st quarter. Renaissance Technologies LLC now owns 2,041,600 shares of the company’s stock valued at $2,000,000 after acquiring an additional 250,700 shares in the last quarter. Finally, AustralianSuper Pty Ltd acquired a new stake in Rackspace Technology in the third quarter worth $2,276,000. 82.48% of the stock is owned by institutional investors.

About Rackspace Technology

Rackspace Technology (NASDAQ: RXT) is a leading provider of managed multi-cloud solutions and services, specializing in the deployment, management and optimization of public and private cloud environments. The company helps organizations design and operate applications across platforms such as Amazon Web Services (AWS), Microsoft Azure, Google Cloud and its own private cloud infrastructure. Rackspace’s core offerings include cloud migration, application modernization, data protection, security services and 24x7x365 operational support.

Beyond cloud hosting, Rackspace offers a range of professional services designed to accelerate digital transformation initiatives.